UAE telecom firm Du in $273 mn rights issue

DUBAI, UAE: Dubai-based telecoms provider Du said on Monday that it would pursue a 1 billion dirham ($272.3 million) rights issue to fund infrastructure improvements as part of a larger investment plan for 2010.

Du said it aimed to "transform the company from a high growth early stage venture to a mature company with efficient management of future funding requirements."

Du said it aimed to achieve investment grade status and access a range of funding sources.

"In light of this, the board concluded that an injection of equity would be a proactive first step in achieving this plan," the company said.

Du, also known as Emirates Integrated Telecommunications Company, said its major shareholders with around an 80 percent stake backed the issue and would take up their rights in full.

The company has previously said it has an investment programme exceeding 2.2 billion dirhams ($599 million) for 2010.